A Conceptual Framework for Integrating IoT and Blockchain for Smart and Sustainable Urban Development

Highlights

What are the main findings?

• The integration of IoT and blockchain enables transparency, automation, and secure digital identities to enhance sustainable urban development.
• IoT and blockchain technologies support urban sustainability and strengthen citizen engagement through digital participation and governance tools.

What are the implications of the main findings?

• IoT and blockchain convergence advances smart, sustainable, and participatory urban development aligned with SDG 11.
• Policymakers and urban planners can leverage IoT and blockchain integration to design inclusive, accountable, and citizen-centered smart and sustainable urban environments.

Abstract

Cities increasingly face urban sustainability challenges due to rapid urbanization, climate pressures, and infrastructure demands. In response, smart city frameworks have emerged as transformative strategies that promote sustainability, efficiency, and resilience. Among the enabling technologies, the integration of the Internet of Things (IoT) and blockchain is gaining traction for supporting data-driven, transparent, and inclusive forms of sustainable smart cities. This systematic review analyzes peer-reviewed studies to examine how IoT and blockchain contribute to smart and sustainable urban development. The findings are organized into five thematic areas: (1) applications of IoT and blockchain for sustainable urban development; (2) operational applications across urban sustainability sectors such as energy, mobility, waste, and environmental management; (3) blockchain-enabled urban governance mechanisms including smart contracts, identity systems, and emergency response; (4) direct citizen engagement through transparent participation platforms and incentive-based systems; and (5) challenges and opportunities associated with IoT and blockchain technologies in the context of sustainable city development. In addition, the study proposes a conceptual framework that illustrates how IoT and blockchain integration support sustainable urban innovation. The review highlights the transformative potential of IoT–blockchain convergence in shaping future smart and sustainable cities and aligns with the United Nations Sustainable Development Goal 11.

1. Introduction

The world is grappling with urgent urban sustainability challenges as rapid urbanization, climate change, and growing social inequalities place immense pressure on urban infrastructure, governance systems, and social equity [1]. These challenges directly relate to the objectives of Sustainable Development Goal 11 (SDG 11), which calls for inclusive, safe, resilient, and sustainable cities, highlighting the global urgency of addressing urban transformation in a holistic and equitable manner [2]. Currently, 55% of the global population resides in urban areas, a figure expected to reach 68–70% by 2050. According to the United Nations, cities account for 60–80% of global energy consumption and about 75% of CO₂ emissions [3]. The United Nations Environment Programme (UNEP) [4] also highlights the escalating complexity of urban solid waste, projected to grow from 2.1 billion tons in 2023 to 3.8 billion tons by 2025, with potential mismanagement costs reaching USD 640.3 billion by 2050. Additional challenges include aging transport systems, rising energy demands, overburdened healthcare systems, and widespread environmental pollution [4].

The concept of smart cities emerged in response to these multifaceted challenges and has become a key framework for reimagining urban life and advancing sustainability goals [5]. As emphasized by Almulhim [6], smart city planning plays a crucial role in enhancing urban resilience by integrating digital technologies to strengthen infrastructure, governance, and citizen well-being. Furthermore, integrating artificial intelligence and smart infrastructure management into urban planning enhances cities’ capacity to achieve sustainability, efficiency, and adaptive governance [7]. The integration of advanced digital technologies, such as the Internet of Things (IoT), blockchain, artificial intelligence (AI), and big data, aims to improve the efficiency, sustainability, and usability of urban infrastructure and services [8]. These technologies support data-driven urban development to enhance the quality of life for city residents [9,10]. The global smart cities market generated over USD 392.9 billion in 2019 and is projected to exceed USD 1380 billion by 2030, underscoring its strong potential for economic growth and cost-effective innovation [11]. This global shift toward sustainable urbanism aligns with the United Nations’ SDG 11.

Recent studies emphasize that achieving sustainable and resilient smart cities requires a shift from purely technology-driven approaches toward human-centered frameworks that prioritize inclusion, governance, and citizen empowerment [12]. Although smart city initiatives often focus on technological innovation, their long-term success depends equally on integrating social perspectives and empowering citizens in planning and implementation processes [13]. The growing demand for citizen involvement challenges conventional top-down governance systems. Participatory urban development is vital for the effectiveness of smart infrastructure, fostering community ownership and ensuring solutions align with actual needs [14]. More accountable and transparent governance, supported by citizen participation, also helps eliminate digital divides and avoid new social disparities [15,16,17]. The goal is to build more equitable, inclusive, and sustainable cities in which technology responds to human needs. In this vision, smart city development is seen as a collaborative, community-driven process often initiated by citizens, small businesses, and non-profits [18].

The IoT is a key enabling technology in smart cities, enabling physical objects to connect through sensors and actuators to allow real-time monitoring and remote control of urban systems [19]. This capability supports efficient resource utilization and reduced energy consumption and promotes sustainability in sectors such as waste management, transportation, and environmental monitoring. For example, IoT-based systems can monitor waste bin levels, optimize collection routes, and improve waste segregation processes [20]. Complementing IoT, blockchain offers a decentralized ledger system that strengthens urban governance and supports circular economy initiatives [21]. By ensuring traceability, immutability, transparency, and auditability, blockchain addresses the limitations of centralized systems and contributes to building resilient, secure, and trustworthy urban infrastructures [22].

The synergistic integration of IoT and blockchain serves as a powerful enabler for smart cities, providing advanced capabilities in data security, privacy protection, and operational efficiency [23,24]. This technological convergence is becoming a central theme in shaping the future of smart city applications, particularly in areas such as solid waste management, while also supporting circular economy practices and broader urban sustainability goals [25,26]. When combined with artificial intelligence, these technologies enhance data-driven decision-making, optimize resource allocation, and improve overall urban quality of life. Furthermore, they foster public trust and encourage citizen participation in governance processes through increased transparency and accountability [27,28,29].

The integration of blockchain and IoT technologies in urban governance is emerging as a transformative force with strong potential to enhance citizen participation and sustainable planning. There are, however, several notable gaps in the associated literature. Sleem [30] highlights the absence of practical applications and integrated frameworks that combine these technologies in urban development. Similarly, Shen and Pena-Mora [31] observe that most research focuses on technological functionality, often overlooking practical implementation in urban development. Falco and Kleinhans [32] note that digital platforms enabling co-production between citizens and governments are fragmented and underexplored, with limited real-world examples. Becker et al. [33] also identify a lack of design knowledge for ICT-supported participation tools, emphasizing the need for clearer engagement frameworks. While Berigüete et al. [34] offer a broad overview of urban digital transformation in urban environments, they pay limited attention to citizen-driven governance and participatory accountability. Likewise, Bai et al. [35] propose blockchain-based incentives to promote civic engagement, but their approach lacks integration with localized participatory planning processes.

While smart cities are often presented as solutions to sustainability challenges, Benini et al. [36] highlight that the integration of social, environmental, and economic dimensions remains insufficient for achieving comprehensive sustainability goals. Although smart cities hold the potential to address issues such as resource depletion and environmental degradation, the existing literature is lacking in accounts of how technologies are effectively integrated to confront these challenges holistically. Veloso, Fonseca, and Ramos [37] stress the need for standardized assessment methods to evaluate the impact of smart technologies on urban sustainability. Biasin and Delle Foglie [38] emphasize the importance of blockchain in building financial ecosystems that support long-term sustainability. Moreover, despite growing recognition of community participation, studies such as Kapoor and Singh [39] often lack detailed analyses of the digital tools and mechanisms that can effectively facilitate citizen engagement in governance processes.

This study aims to address the existing gaps by systematically analyzing how the integration of IoT and blockchain technologies contributes to smart and sustainable urban development. It explores practical applications of these technologies across urban systems and planning practices, focusing on how they support transparency, inclusivity, and resilience in city management. The central research question guiding this review is: How does the integration of IoT and blockchain technologies contribute to smart and sustainable urban development? The significance of this review lies in the urgent need to build sustainable and resilient urban environments amid growing global challenges. While prior studies have often examined these technologies in isolation or from a purely technical standpoint, this review focuses on their intersection with the broader social and governance dimensions of smart cities, highlighting their potential to foster accountability, citizen trust, and participatory decision-making. In doing so, it contributes to bridging the knowledge gap on how technological innovation can simultaneously advance social, environmental, and economic objectives toward inclusive and sustainable urban futures.

2. Methodology

A systematic review was conducted following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) 2020 guidelines [40]. The literature search was performed using the Scopus database, selected for its extensive indexing of high-quality, peer-reviewed publications and its broad interdisciplinary coverage of urban innovation, sustainability, and digital technologies. The search strategy was designed to capture the intersection between the IoT, blockchain, and urban development contexts. Specifically, the query combined technological, urban, and social dimensions to identify studies addressing both technical integration and participatory aspects of smart and sustainable cities. The exact search string is presented in Table 1. The inclusion criteria were limited to peer-reviewed articles published in English between 2017 and June 2025.

Table 1. Search string.

Database	Search String
Scopus	(TITLE-ABS-KEY (“Internet of Things” OR IoT) AND TITLE-ABS-KEY (“Blockchain”) AND (“urban planning” OR “sustainable urban development” OR “smart cities” OR “sustainable cities”) AND (“citizen engagement” OR “participatory governance” OR “public participation” OR “community engagement”))

This combination ensured the inclusion of research exploring the technological, governance, and social implications of IoT–blockchain integration in the context of smart and sustainable urban development. The focus on both sustainability and participatory dimensions reflects the multidimensional nature of urban innovation and aligns with the holistic scope of this review.

The selection process began with the formulation of a search string and the identification of an appropriate database. After executing the search strategy, inclusion and exclusion criteria were established to filter the retrieved results and identify studies relevant to the research question and objectives. The review followed a series of structured steps, applying these criteria to ensure the quality and relevance of the selected studies, removing unrelated publications and retaining those aligned with the study’s goals. The criteria, presented in Table 2, were designed to maintain the focus of the review by selecting papers examining the integration of IoT and blockchain within the context of smart and sustainable urban development, governance, and citizen engagement.

Table 2. Inclusion and exclusion criteria.

Inclusion Criteria	Exclusion Criteria
Studies that focus on or explicitly discuss the technological role of IoT and blockchain, as well as their integration in fostering sustainable urban development, participatory governance, and citizen engagement	Studies focused on other than IoT and Blockchain technologies
Studies addressing smart cities, sustainable cities, participatory urban development, or urban planning	Studies considered outside urban development
Studies that examined the role of citizen engagement, public participation, or governance mechanisms within urban or smart city contexts	Studies outside the scope of urban planning and not connected to city infrastructure or governance.
Studies focusing on sustainability aspects such as sustainable development and environmental sustainability within urban or smart city contexts	Studies that did not address sustainability or sustainable urban development
Articles, books, book chapter, reviews and conference papers	Studies of non-peer-reviewed journals, opinion or editorial papers
Papers in the English language	Papers in other than the English language
Papers published from 2017–2025 inclusive	Papers published before 2017

Data extraction was conducted using an Excel spreadsheet to compile information relevant to the research aims and questions. After defining categorization criteria, data were collected through the following steps: (1) initially selecting one accepted article to pilot the extraction and categorization process; (2) reviewing the title, abstract, keywords, and conclusion; (3) extracting and grouping relevant information according to the review focus; (4) conducting a full-text reading if initial details were insufficient; and (5) repeating the process sequentially for all included articles. The study systematically gathered and analyzed data related to the integration of IoT and blockchain in smart and sustainable urban development, including aspects of participatory governance and citizen engagement. Articles were sorted and summarized based on their thematic contributions. Extracted data included author(s), publication year, study type, and key research contributions. The analysis emphasized identifying approaches to citizen engagement and urban development, with findings organized into tabular form. Special attention was paid to the application of IoT and blockchain technologies, highlighting the specific urban sectors and governance domains in which they were implemented.

The selection process is outlined in Figure 1. A total of 59 articles were retrieved from Scopus and imported into EndNote (Version 28.0) for screening. No duplicate records were identified. An initial review of titles and abstracts resulted in the exclusion of 10 articles. The full texts of 14 additional articles could not be retrieved. Of the remaining 35 papers, full-text reviews were conducted, and two were excluded for not meeting the inclusion criteria. As a result, 33 articles were selected and included in the final systematic review. To ensure transparency and reproducibility, the screening and selection of studies were conducted independently by two reviewers. Any discrepancies in their selections were resolved through discussion; if consensus could not be reached, a third reviewer was consulted to make the final decision. A thematic analysis approach, based on the framework by Clarke and Braun [41], was employed to synthesize the findings. This process involved systematically assigning subthemes and overarching themes aligned with the research questions and objectives. The thematic synthesis was conducted using data from all 33 studies included in the review.

Figure 1. PRISMA flow chart.

3. Results

3.1. General Observations

The descriptive analysis encompassed 33 selected studies, broadly categorized by author, study type, and year of publication. It also summarized key findings to provide an insightful overview of the research landscape on the integration of IoT and blockchain in smart and sustainable urban development, including their role in participatory governance and citizen engagement (Table 3).

Table 3. Summary and analysis of 33 selected studies.

Author (Year)	Study Type	Key Findings
Thomas et al. [42]	Conceptual framework study	Proposes a conceptual smart framework for sustainable urban development by integrating AI, blockchain, and IoT technologies to enhance resource efficiency, data security, and urban service delivery in smart cities.
Rasoulzadeh Aghdam et al. [42]	Bibliometric review	Evaluates existing research on socially focused smart cities by mapping key themes such as participatory governance, data privacy, AI, and sustainability, offering a synthesis to guide future research and policy development.
Rashid et al. [43]	Conceptual framework study	Proposes and evaluates a blockchain-based framework integrated with AI and IoT to reform land management in Bangladesh by enhancing transparency, reducing corruption, and improving the efficiency of land registration and monitoring systems.
Miller et al. [44]	Literature review	Evaluates how the integration of IoT and AI enhances environmental monitoring and supports sustainable environmental management, with a focus on applications in water quality and climate data.
Malarvizhi and Anusuya [45]	Conceptual study	Proposes a smart city framework that integrates Blockchain, IoT, and AI to enhance urban sustainability, transparency, and service efficiency through secure data management, predictive analytics, and real-time monitoring
Hakiri et al. [46]	Experimental study	Proposes an integrated experimental framework combining blockchain and software-defined networking (SDN) to enhance the performance, security, and energy efficiency of IoT networks through smart contracts and a novel proof-of-authority consensus mechanism
Gholami et al. [22]	Literature Review	Reviews the integration of blockchain technology into IoT systems, examining their benefits and challenges, particularly in security and privacy, and highlighting future research directions
Daud et al. [47]	Literature review	Evaluates the role of emerging technologies as tools in emergency management, focusing on their application, effectiveness across emergency management phases, and integration challenges.
Zyoud and Zyoud [28]	bibliometric review	Reviews IoT applications in waste management in smart cities, identifying key research trends, challenges, and future opportunities for advancing urban sustainability
Zou and Zhong [48]	Quantitative study	Analyzes how digital technologies, including IoT and blockchain, influence the relationship between local environmental constraints and a city’s position in the dual value chain
Szpilko et al. [49]	Bibliometric review	Analyzes technological trends and prospects in energy management for smart cities, highlighting the role of emerging technologies such as IoT, AI, blockchain, and smart grids in promoting sustainable urban development
Matei and Cocoșatu [50]	Systematic Review	Synthesizes and analyzes how IoT, AIoT, digital twins, and cloud-based technologies are integrated into smart city governance to support sustainable urban development and citizen engagement
Khan et al. [23]	Experimental study	Proposes an AI-enhanced blockchain framework for securing IoT data in smart cities, aiming to improve threat detection, data confidentiality, and system efficiency
Truong et al. [21]	Literature review	Provides a comprehensive survey of how blockchain enables the metaverse, focusing on digital asset management, decentralized governance, and data security.
Szpilko et al. [26]	Bibliometric review	Classifies and synthesizes research trends in smart city waste management, highlighting current practices, emerging technologies, and future research directions to support urban sustainability.
Sedrati et al. [51]	Conceptual framework study	Proposes a governance framework (IoT-Gov) for managing IoT systems, aiming to address challenges related to accountability, security, privacy, and ethical use in smart cities
Rathod et al. [52]	Experimental study	Proposes and experimentally validates a blockchain- and AI-enabled framework for enhancing public safety systems in smart cities over 6G networks, focusing on data integrity, scalability, and security in IoT environments.
Gupta [53]	Qualitative study	Explores how blockchain technology can support the development of a greener and more sustainable IoT ecosystem, with a focus on enhancing energy efficiency, data security, and long-term environmental sustainability.
Adhikari and Ramkumar [54]	Literature review	Examines the integration of IoT and blockchain technologies, analyzing their applications, challenges, and security implications across various domains, including smart cities.
Pahuja [55]	Conceptual study	Examines the role of technology firms in training and reskilling smart city workforces, highlighting strategies for workforce development through public–private partnerships.
Ivić et al. [56]	Systematic literature review	Analyzes how the integration of AI, IoT, and blockchain technologies can enhance e-government services, identifying key opportunities, challenges, and risks associated with their adoption.
Pahuja [13]	Conceptual framework study	Outlines baseline infrastructure requirements and promotes standardization frameworks to support scalable, interoperable, and efficient smart city development.
Khare et al. [57]	Literature review	Reviews the application of emerging digital technologies in renewable energy systems, with emphasis on enhancing sustainability and transforming energy infrastructure in smart cities
D’Agati et al. [58]	Conceptual framework study	Develops and evaluates a multilevel IoT/cloud architecture for crowdsourced mobility services in smart cities, addressing sustainability, traffic efficiency, and air quality monitoring.
Bai et al. [35]	Experimental research	Assesses the role of blockchain in enabling citizen participation for smart city governance and sustainable infrastructure maintenance.
Hsu et al. [59]	Literature review	Reviews how IoT and Earth observation technologies, with support from blockchain-based data governance, can address key gaps in climate change monitoring and mitigation efforts.
Engin et al. [60]	Conceptual/literature review	Explores the role of IoT, AI, blockchain, and big data in transforming urban management, planning, and governance in the shift toward data-driven cities.
Berglund et al. [61]	Literature review	Reviews the role of IoT and other emerging technologies in enabling smart infrastructure systems across civil engineering domains, with a focus on advancing smart city development and sustainability.
Komninos et al. [62]	Qualitative study	Critically examines how smart cities can move beyond algorithmic automation by integrating digital platforms, citizen engagement, and collaborative intelligence into urban governance.
Engin and Treleaven [63]	Literature review	Reviews how data science technologies, including AI, IoT, blockchain, and analytics, are transforming government services and enabling automation in public administration.
Lam et al. [64]	Conceptual study	Proposes a blockchain-based system to improve transparency and accountability in civil engineering practices within smart cities.
Potts et al. [65]	Conceptual/theoretical Study	Explores how blockchain technology and the emerging concept of the “crypto city” can transform smart cities by decentralizing infrastructure coordination, reducing transaction costs, and enabling civic participation in the provision of urban services.
Wibowo A et al. [66]	Quantitative study	Evaluates the strategic planning and community adoption of smart city technologies in Tangerang, Indonesia, focusing on the integration of IoT, blockchain, and big data into urban development and digital public service delivery.

Following the review of the selected papers on sustainable urban development, the findings were synthesized using content and narrative synthesis approaches. The literature was then thematically classified into six categories based on emergent insights:

• Applications of IoT and blockchain for sustainable urban development;
• Key IoT and blockchain use cases across urban sustainability sectors;
• Transformations in urban governance through IoT and blockchain integration;
• Enhancing citizen engagement through the integration of IoT and blockchain;
• Challenges and opportunities associated with IoT and blockchain technologies;
• Moving towards a conceptual framework.

It is important to note that although the studies were grouped under these primary categories, many exhibited thematic overlaps. The detailed results of this analysis are presented in the following section under the five identified themes.

3.2. IoT and Blockchain Applications Enabling Sustainable Urban Development

The review of 33 studies reveals a growing emphasis on the integration of IoT and blockchain technologies within the domain of sustainable urban development. These technologies are increasingly leveraged to enable data-driven, transparent, and resilient urban systems that are not only efficient but also inclusive. Key application domains include real-time environmental monitoring, traffic and mobility optimization, waste management, energy systems integration, and the development of digital infrastructure. IoT facilitates predictive planning and responsive infrastructure through continuous sensor-based data collection, while blockchain contributes by enhancing transparency, data security, and citizen trust. In addition to these core applications, several cross-cutting themes emerged across the literature, including participatory governance, ethical data use, citizen engagement, disaster preparedness, renewable energy integration, and service delivery optimization. These findings underscore the transformative role of IoT and blockchain as enablers of sustainable planning, accountability, inclusivity, and operational efficiency in contemporary urban contexts. Table 4 presents a synthesis of the reviewed studies, highlighting the specific application domains in which IoT and blockchain technologies have been deployed to support sustainable urban development.

Table 4. Overview of IoT and blockchain applications supporting sustainable urban development.

Author (Year)	Key Application	Specific Details/Examples (Domains Covered)
Thomas et al. [42]	Data-driven urban management and sustainable infrastructure optimization	IoT, integrated with AI and big data, enables real-time urban monitoring and resource optimization, while blockchain ensures secure data flows, transparency, and privacy in smart city management.
Rasoulzadeh Aghdam et al. [42]	Socially inclusive smart city governance and ethical tech integration	Participatory governance in smart cities relies on digital platforms, with AI, IoT, and blockchain as key tools, requiring ethical, inclusive frameworks that protect privacy, build trust, promote equity, and integrate social research.
Rashid et al. [43]	Digital land governance and transparent urban property system	Blockchain secures land records and automates transactions via smart contracts; IoT enables real-time monitoring; and AI detects fraud. A phased, community-level rollout fosters transparency, trust, and active local participation.
Miller et al. [44]	AIoT-enabled environmental monitoring for climate-resilient infrastructure	IoT sensors enable real-time environmental monitoring, while AI supports prediction and automation in early warning systems. Future advancements, including blockchain, edge computing, and citizen science, can enhance transparency, scalability, and stakeholder engagement.
Malarvizhi and Anusuya [45]	Urban infrastructure optimization and transparent governance	IoT gathers real-time urban data; AI enables prediction and automation; and blockchain secures management, collectively optimizing infrastructure, boosting service delivery, and fostering citizen engagement for efficient, transparent, and sustainable smart city governance.
Hakiri et al. [46]	Secure IoT infrastructure for smart transportation, energy, and network optimization	Blockchain secures IoT communications with tamper-proof records, while smart contracts automate threat detection. PoA boosts trust, and SDN optimizes real-time data flow for V2X transport, power grid monitoring, and urban public safety.
Gholami et al. [22]	Secure data management and decentralized smart city systems	Blockchain enables tamper-proof data sharing and decentralized IoT control, enhancing security, privacy, and trust in smart grids, supply chains, and infrastructure. Key challenges include scalability, interoperability, and integration for future smart cities.
Daud et al. [47]	Disaster management and urban resilience	IoT and machine learning enhance fault tolerance and early warnings, notably for flash floods, enabling real-time monitoring, accurate data, and informed decisions to strengthen urban disaster resilience and emergency preparedness.
Zyoud and Zyoud [28]	Solid waste management and circular economy	IoT monitors waste levels, optimizes routes, and supports sorting and treatment analysis, while Blockchain ensures secure, transparent data management, advancing municipal waste systems aligned with circular economy principles.
Zou and Zhong [48]	Digital policy-mediated environmental governance and urban value chain positioning	The paper shows how IoT, AI, big data, cloud, and blockchain mitigate local environmental constraints in the dual-value chain, boosting policy impact, competitiveness, and environmental governance through digital innovation.
Szpilko et al. [49]	Energy management and smart cities	Smart cities use IoT, AI, blockchain, and digital twins to optimize energy, integrate renewables, enhance forecasting, improve resilience, and support sustainable, low-emission urban transitions through real-time monitoring and smart grid systems.
Matei and Cocoșatu [50]	Smart city governance and environmental sustainability	IoT, AIoT, and blockchain-enabled networks optimize infrastructure, environmental management, and governance, fostering citizen engagement. Applications span energy, mobility, waste, and transport, improving resource efficiency, reducing emissions, and enabling sustainable urban growth through transparent, real-time platforms.
Khan et al. [23]	Urban cybersecurity and resilient smart infrastructure	A decentralized blockchain-enabled IoT framework using SEaaS integrates AI for threat detection and Ethereum smart contracts, enhancing security, accountability, energy efficiency, and resilience across device, edge, and cloud layers in smart city infrastructure.
Truong et al. [21]	Digital governance and metaverse infrastructure using blockchain	Blockchain enables secure and transparent digital asset transactions, decentralized metaverse economies, and identity management systems.
Szpilko et al. [26]	Smart waste management and route optimization	IoT-enabled smart bins and blockchain-based data management monitor fill levels in real time, optimizing collection routes to cut fuel use and emissions, improving waste efficiency and advancing circular economy practices in sustainable smart city management.
Sedrati et al. [51]	Smart infrastructure governance and ethical IoT oversight	Proposes IoT-Gov, a layered governance model ensuring accountability, security, and ethics in smart cities. Using blockchain, it improves transparency, trust, and compliance, demonstrated via a smart hospital parking access control case.
Rathod et al. [52]	Smart cities infrastructure and public safety management	Utilizes IoT, blockchain, and AI technologies to enhance real-time monitoring, data integrity, and secure communication in public safety applications within smart urban environments.
Gupta [53]	Environmental monitoring	Explores how integrating blockchain with IoT enhances energy efficiency, data security, and system integrity to support resource optimization and sustainable urban development in smart cities.
Adhikari and Ramkumar [54]	Secure IoT infrastructure; blockchain integration for smart city systems	Explores how blockchain–IoT integration enhances trust, transparency, and security in smart city services, covering sectors such as energy, transportation, and environmental monitoring, while addressing scalability, interoperability, and data integrity challenges in urban development.
Pahuja [55]	Workforce capacity building and smart city implementation	Emphasizes developing a smarter workforce for smart cities via tech partnerships, AI-driven local training, resource pools, blockchain-enabled supply chain and logistics management, and public–private collaboration to foster community-led innovation and sustain urban development.
Ivić et al. [56]	Digital infrastructure and public service innovation	IoT, AI, and blockchain are explored as enablers of smarter urban governance, supporting improved service delivery, transparency, and infrastructure management in smart cities.
Pahuja [13]	Infrastructure standardization and community-led innovation	Promotes standardized frameworks and open architecture for smart city interoperability, cost reduction, and scalability, where IoT is a seamless connected network enabling human-free communication, empowering data managers and local innovation to strengthen governance and efficiency.
Khare et al. [57]	Sustainable energy systems and renewable energy integration	IoT, AI, and blockchain optimize renewable energy systems by enabling real-time monitoring, predictive control, and secure decentralized data management, improving generation, forecasting, and distribution efficiency to advance smart city sustainability.
D’Agati et al. [58]	Crowdsourced mobility and environmental quality	IoT and cloud infrastructure enable crowdsourced mobility services, parking detection, air quality monitoring, public transport, reducing costs, pollution, and congestion, while blockchain secures data, enhancing IT security and citizens’ quality of life.
Bai et al. [35]	Smart city infrastructure maintenance and participatory governance	A blockchain-based system enables citizen participation in infrastructure decision-making and monitoring. IoT devices supply data, while blockchain’s architecture, consensus, and incentives drive innovation; digital identity and high-performance computing are excluded.
Hsu et al. [59]	Climate monitoring and environmental data governance	IoT, integrated with analytics and cloud computing, enhances environmental monitoring, supports sustainable living, enables energy and carbon tracking, and addresses big environmental data challenges for climate change mitigation and progress evaluation.
Engin et al. [60]	Smart city and data-driven management of urban systems	IoT sensors and blockchain, combined with big data analytics, enable virtual models and data-driven systems that optimize traffic, energy, and waste management, enhance governance, and support efficient, sustainable urban operations.
Berglund et al. [61]	Smart infrastructure management and smart city transparency through data visualization	IoT and blockchain enable secure, interoperable infrastructure for smart parking, adaptive lighting, traffic, environmental, and structural monitoring. Shared data and visualization tools enhance transparency, fostering informed interaction among planners, citizens, and urban systems.
Komninos et al. [62]	Collaborative smart city governance and digital platform-enabled engagement	IoT, blockchain, and AI enable smart cities, but integrating human and institutional intelligence fosters innovation. Digital platforms enhance engagement, co-creation, and collaboration, while balancing technical solutions with social and creative inputs for inclusivity.
Engin and Treleaven [63]	Real-time urban infrastructure management and smart public service delivery	IoT, AI, and blockchain transform public services via real-time monitoring, predictive analytics, and secure records. Barcelona applies these in waste, lighting, transit, and parking, boosting efficiency, transparency, and data-driven urban management.
Lam et al. [64]	Blockchain for civil engineering oversight in smart city infrastructure	Proposes a blockchain system for civil engineering to ensure transparent, tamper-proof records of construction activities. Includes a token model to engage the public, with potential expansion to broader smart city applications.
Potts et al. [65]	Decentralized governance of urban services and digital infrastructure	Introduces the “crypto city” model, using blockchain to cut costs, enable decentralized infrastructure coordination, and empower civic management of public goods, shifting governance from centralized authorities to community-driven urban data and services.
Wibowo A et al. [66]	Digital public service delivery and inclusive smart city engagement	Highlights “Tangerang Live” smart city app offering civil services, complaints handling, and real-time updates. IoT, blockchain, and big data support it, but gaps in access and awareness call for inclusive planning.

3.3. Key IoT and Blockchain Applications in Urban Sustainability Sectors

While the previous section explored the integrated role of IoT and blockchain in advancing sustainable urban development, this section focuses specifically on key applications of these technologies within core urban sustainability sectors: mobility, energy, waste management, and environmental monitoring. Across these domains, IoT and blockchain are increasingly employed to enhance system responsiveness, operational efficiency, and environmental performance. Smart infrastructure solutions, such as sensor-integrated buildings, predictive maintenance, and energy-efficient systems, enhance both resource utilization and infrastructure performance [61]. In the mobility sector, smart traffic and parking systems contribute to reduced congestion and lower emissions [54].

In the energy domain, IoT strengthens sectoral security by enabling real-time monitoring, smart grid optimization, and the integration of renewable energy sources [46,49]. Regarding waste management, emerging IoT technologies, such as smart bins, dynamic routing, and circular economy models, are being used to minimize environmental impact and improve system efficiency [26,28]. Environmental applications include real-time monitoring of air and water quality, climate prediction, and intelligent lighting systems that support hazard anticipation and resource-saving measures [44,50]. Table 5 provides a synthesized overview of these application areas, highlighting how IoT and blockchain technologies contribute to specific sustainability objectives across urban sectors.

Table 5. Application of IoT and blockchain in the sector of urban sustainability.

Domain	IoT and Blockchain Application	Contribution to Sustainability	Details/Examples
Mobility	Smart traffic management, smart parking systems, and vehicle-to-infrastructure (V2I) communication	Reduces traffic congestion and lower greenhouse gas emissions.	− IoT facilitates real-time city transportation, such as intelligent parking and traffic optimization [61]. − IoT and blockchain allow planning routes efficiently and assists in building intelligent parking infrastructure [54]. − Provides mobility on the basis of crowdsourcing IoT-enabled infrastructure [58].
Energy management	Smart grids, smart meters, and real-time monitoring of energy consumption	Enhances energy efficiency, supports integration of renewable sources, and reduces dependency on fossil fuels.	− The IoT and blockchain used in energy management and smart grids encourage the presence of renewable energy [49]. − IoT and blockchains facilitate regional smart power grids and the real-time defects distribution of energy-saving information [46]. − IoT and blockchain facilitate energy monitoring and control in urban environments [59].
Waste management	Smart bins, monitoring systems, and sorting, recycling, and waste-to-energy processes	Reduces environmental impact by optimizing collection routes, minimizing fuel use and emissions, and promoting a circular economy through recycling and reusability.	− IoT- and blockchain-based systems enable real-time monitoring of bin levels, route optimization, and enhanced recycling efficiency to support circular economy objectives. [26,28]. − IoT and blockchain facilitate smart waste management through segregation, monitoring, and efficient collection [20].
Environmental sustainability	Real-time air and water quality monitoring and secured climate change forecasting	Improves pollution control and environmental quality, reduces carbon footprint, and enhances sustainability via early hazard detection and better resource management.	− IoT and blockchain systems enable real-time monitoring of environmental parameters to support sustainability in air, water, and pollution control [50]. − The integration of IoT, AI, and blockchain enhances environmental data collection and decision-making, thereby strengthening the implementation of local environmental policies and improving planning [44,48].

3.4. Transforming Urban Governance Through IoT and Blockchain Integration

Various domains within smart cities, such as transportation, energy management, and public services, leverage blockchain to achieve decentralization, improve transparency, and enhance operational efficiency [48]. Blockchain facilitates data-driven planning, collaborative governance, and participatory decision-making in smart- and crypto-city contexts, while its integration with AI and IoT enhances security, resilience, and intelligent infrastructure management [23,50,54,65]. Data management assurance, efficient and trustworthy, makes sure that the records of institutions are synchronized, especially during land governance, while automation advances the efficacy of administrative services during e-governance [22,43,54].

Smart contracts in blockchain-based systems enhance trust, transparency, and automation in numerous uses in the smart city, including the healthcare sector, energy systems, and law enforcement [52]. In particular, it is possible to automate municipal software and IoT services and provide decentralized identity solutions to provide secure authentication and access control in complex-city environments [22,54]. As an illustration, smart contracts are used in a blockchain-based land management model that will be applicable in Bangladesh as land transactions and leasing are automated, with decentralized identity systems being used to provide security in IoT-based urban management [43]. Moreover, blockchain allows peer-to-peer energy trading and resource availability optimization within renewable energy and brings about environmental sustainability. It can also increase the auditability and security of data in decentralized energy-injunctions [57]. The blockchain can serve to establish orderly and transparent systems of emergency response [21,47,52]. A summary of authentic usability locations is presented in Table 6, which displays a synthesized depiction of the local applications of IoT and blockchain technologies to functionalities in urban governance.

Table 6. IoT and blockchain applications across urban governance dimensions.

Domains of Urban Governance	Blockchain’s Role/Benefit	Details/Examples
Overall governance and decision-making	Enhances transparency, accountability, and collaboration; promotes decentralized governance.	IoT and blockchain frameworks enable governance models, policy development, and sustainable growth through data-driven urban planning, offering immutable records, reliable data management, and decentralized systems to enhance transparency, security, and efficiency in smart city operations [22,23,48,50,54].
Public participation and engagement	Encourages active citizen involvement in governance processes.	IoT and blockchain ensure transparent, verifiable decision-making [50], using verifier groups, game-theory incentives [35], blockchain voting, and citizen contributions to crypto-platforms [65] to enhance participation and democracy.
Data management and integrity	Ensures secure, immutable, and transparent data flow and record-keeping.	Blockchain improves data integrity and flow, removing central failure points with tamper-proof, auditable histories [54], enabling secure land-data sharing and IoT node authentication for trust [22,43].
E-government services	Automates administrative processes, reduces intermediaries, and enhances efficiency.	Blockchain automates most administrative tasks, improving public service efficiency, scalability, and reliability [56,63]. Estonia, China, and Singapore are investing in blockchain for e-governance. Healthcare transactions and land records are managed using blockchain and IoT [43,54].
Contract and agreement management	Facilitates self-executing, transparent, and trusted agreements.	Blockchain automates land sales and lease agreements via smart contracts, enhancing governance transparency [43]. IoT-generated smart city data is securely managed through blockchain, improving integrity and access control [23].
Identity and authentication management	Provides decentralized and tamper-proof identity solutions for users and devices.	IoT and blockchain enable decentralized identity and key management, ensuring secure authentication and transparent access control. Consensus mechanisms enhance trust and integrity in identity verification and permissions [22,54].
Resource management (Energy, Waste, Mobility)	Optimizes resource allocation, enhances transparency, and enables peer-to-peer sharing.	IoT and blockchain can be used in wastage management to guarantee transparency. It is traceable and auditable to promote incentives, decentralized energy trading, and secure V2V communications—preventing pollution, increasing safety, and making resources more efficient [26,52,57,59].
Security and privacy	Offers robust security features and privacy-preserving mechanisms.	Decentralization, transparency, immutability, validation, and pseudo-anonymity are attributes of blockchain that ensure the security of IoT data sharing to allow citizens to check the processes of governance in real time [22,35,52,61].
Emergency management	Improves coordination and transparency in emergency relief.	The blockchain suggests the interoperability and transparency of emergency response, and it will be used as a universal system enabling various stakeholders to coordinate their resources during a disaster [47].

3.5. Integrating IoT and Blockchain to Enhance Citizen Engagement

The integration of IoT and blockchain technologies is reshaping urban governance by enabling a more transparent, decentralized, and participatory model of administration. This transformation facilitates real-time data collection and automated verification, fostering citizen trust through transparent and immutable recordkeeping [42,54,67]. IoT systems provide continuous environmental and urban data, empowering citizens to observe, validate, and engage with ongoing developments in their cities [34,46,59].

Furthermore, blockchain supports secure and decentralized identity management, enabling citizens to interact with digital services while maintaining privacy and data ownership [29,67]. Through digital twins, smart contracts, and participatory platforms, citizens transition from passive recipients to active co-creators in smart city ecosystems [50,62,68,69]. These technologies also establish incentive mechanisms, such as proof of participation and token-based rewards, which encourage ongoing engagement with urban infrastructure and services [35,70].

Recent studies emphasize how blockchain can support new models of urban democracy by incentivizing cooperation and encoding governance structures directly into technology [71]. At the same time, empirical evidence shows that increased transparency via digital technologies leads to higher citizen participation in local decision-making [17]. Collectively, these systems create the foundation for a crypto-enabled urban governance model that empowers communities through trust, data transparency, and digital collaboration [23,51,65]. Table 7 synthesizes these conceptual insights into four core citizen engagement dimensions—transparency and trust, secure and accessible data sharing, public participation and decision-making, and co-creation mechanisms—by mapping them to specific IoT and blockchain applications or mechanisms and clarifying how each contributes to inclusive, accountable, and tech-enabled urban governance.

Table 7. Citizen engagement through IoT and blockchain: applications, mechanisms, and outcomes.

Citizen Engagement Parameters	IoT and Blockchain Application/Mechanism	How It Helps
Transparency and trust	IoT and blockchain ensure immutable, verifiable records via smart contracts, preventing data tampering and enhancing accountability, traceability, and public trust in smart city administrative services [54,72,42,70,67].	Builds public trust in government by enabling citizens to verify data and processes, so reducing fraud.
	IoT delivers continuous data feeds, while blockchain secures timestamped, transparent records, enabling civic monitoring, participatory governance, and public engagement [17,39,42,54,62,67,71,72].	This enables citizens to monitor urban activities in real time, ensuring accountability and fostering shared oversight.
	IoT and blockchain ensure data credibility and provenance via timestamping, enabling trusted AI decisions. Immutable records enhance transparency, auditability, and public trust in governance [21,35,42,54,67,72].	Accurate, tamper-proof data and processes boost citizen confidence in policy decisions and algorithmic urban planning.
Secure and accessible data sharing	The IoT collects sensitive data in urban areas, and blockchain upholds a decentralized storage platform, providing reliability, integrity, and trust to establish participatory data ecosystems and civic empowerment [17,54,67,70,71,73].	Despite breach concerns, citizens can access and share sensitive data securely, preserving privacy, integrity, and trust.
	The use of IoT and blockchain can support secure and decentralized data sharing while ensuring data provenance and transparency. These technologies foster trust among stakeholders and enable citizens to participate in the verification and use of civic information [16,17,32,42,60,67,71,73].	This creates secure data ecosystems where citizens, governments, and stakeholders collaborate to solve problems and enhance services.
	In the context of identity and access management, the use of IoT along with blockchain allows a decentralized authentication process that enhances privacy, access control, and trust in civic services, such as voting and access to data [21,33,67,70,71].	Secure digital identities enable citizens to safely access public services, protecting sensitive data and preventing unauthorized decision-making.
Facilitating public participation and decision-making	IoT and AI gather real-time citizen feedback; blockchain ensures transparency, enabling accountable, inclusive decision-making and empowering citizen participation in urban planning [16,32,50,71,73].	Citizen input and real-time data shape decisions, ensuring governance remains transparent, responsive, and aligned with community needs.
	Blockchain enables decentralized urban governance, allowing citizen participation through secure, transparent, incentive-based systems, with real-time monitoring ensuring accountability and fostering trust in public projects [16,32,35].	It enhances electoral integrity and enables direct, trustworthy citizen input into policies through secure democratic participation channels.
	Blockchain, integrated with digital identity systems, enables secure, transparent, and tamper-proof e-voting, enhancing civic participation and trust in local democratic decision-making, [21,70,73].	Enables traceable, tamper-proof referenda, strengthening civic participation and trust in democratic decision-making at the local level.
	IoT, combined with AR, GIS, and digital twins, enables interactive urban co-design, while blockchain secures and verifies citizen input, fostering inclusive governance and civic trust [32,35,62,67,15].	Participatory visualization helps citizens understand and shape urban development, ensuring inclusion in public and private planning.
Co-creation mechanisms	The integration of IoT, blockchain, and social media fosters citizen interaction via participatory sensing, user-generated content, and open collaboration [35,62]. Citizens share real-time urban data using connected devices and platforms [15,17], enhancing transparency and participatory decision-making.	This empowers citizens to be active co-creators to use their local knowledge and real-time observations to improve urban life.
	Blockchain-based smart contracts enable real-time incentive models that reward citizens for participation in smart city services. These include managing waste, reporting incidents, and contributing urban data sharing, using game-theoretic and proof-of-participation models to sustain engagement [28,35,70].	Incentive models motivate citizens to engage in tasks like waste management and reporting, sustaining participation and involvement in smart city services.
	SEaaS and data markets based on blockchains also allow citizens to distribute and commercialize sensor data, with smart contracts achieving authenticity, open exchanges, and participatory innovation in smart cities [23,74].	This enables citizens to monetize or share data, fostering participatory urban engagement and collaborative resource-sharing economic models.
	Smart contracts that have blockchain ready to run allow their use in self-governing activities such as environmental reporting. Combined with IoT and AI, they allow process decentralization, transparency, and inclusivity of the decision-making approach through participatory crypto-city models [51,54,59,65,72].	Transparent, automated policy implementation builds citizen trust in governance, enhancing interactions and reducing reliance on intermediaries.

3.6. Opportunities for IoT and Blockchain to Overcome Challenges

There are a number of challenges when it comes to integrating the IoT and blockchain technology. As Khan et al. [23] note, due to resource limitations (limited processing power and energy storage) in an IoT device, resource-intensive processes (such as running blockchain processes) are inherently challenged, particularly in systems with low-power computing. These limitations negatively impact the performance and scalability of real-time security applications. The concern is consistent with that of Haque et al. [75], who state that the huge amount of data produced by IoT devices can consume a traditional blockchain system, especially with proof-of-work (PoW), because of its high computational intensity, as well as its low throughput and energy-intensive nature. Connection congestion and bottlenecks in performance will be even more troublesome as the number of interconnected devices and transactions becomes gigantic.

Adhikari and Ramkumar [54] highlight that IoT networks are prone to interoperability issues, which complicate blockchain integration due to the diversity in communication protocols and device capabilities. To address these integration challenges, Hakiri et al. [46] propose the use of an alternative consensus method, proof-of-authority (PoA), as a more efficient and lightweight solution compared to conventional mechanisms such as PoW. Furthermore, the variety of IoT device types, data formats, and communication standards (e.g., Wi-Fi, cellular, MQTT, XMPP, AMQP) hinders seamless data exchange between systems. A consistent and cross-domain standard for IoT interoperability is still lacking [76].

Although IoT–blockchain integration holds great potential, a key barrier is the absence of unified standards for cross-domain data exchange. Proprietary protocols and formats create heterogeneous communication, limiting interoperability and fostering closed ecosystems. Efforts such as the Open Messaging Interface and Open Data Format aim to connect IoT devices with BIM systems [76]. Middleware such as FIWARE standardizes data formats and APIs for smoother interaction [77]. The European Commission’s Digital Single Market strategy addresses fragmentation, promoting cross-border data flows and innovation [78], turning raw data into standardized, actionable information for effective system integration.

IoT devices, often in unprotected locations, are vulnerable to cyberattacks and tampering, with risks amplified by AI-enabled decision-making [51]. These concerns highlight the need for transparent, participatory governance [42]. Blockchain’s immutability means sensitive data, once recorded, cannot be easily removed. Most IoT devices have limited resources, creating challenges for resource-intensive blockchain systems, necessitating adapted mechanisms [79]. Rapid IoT–blockchain evolution has outpaced laws and regulations, leading to uncertainty over data ownership, privacy, liability, and accountability [67]. Robust frameworks are essential to ensure secure, ethical, and accountable technology deployment.

Opportunities for integrating IoT and blockchain are rapidly expanding through emerging frameworks designed to enhance efficiency, security, and decentralization in smart city planning. These frameworks often involve combining IoT-generated data with blockchain to support energy-efficient building design and assess ecosystem health as part of broader sustainable urban strategies. For example, Hu and Yao [80] emphasize the transformative role of IoT and big data in reshaping supply chain processes and advancing environmental sustainability. Hakiri et al. [46] also propose an SDN-based IoT architecture integrated with a lightweight blockchain consensus protocol, aimed at improving privacy, data flow, and system transparency. Their findings demonstrate significant performance gains, including up to 68% lower latency, 87% higher transaction throughput, and 45% improved energy efficiency compared to traditional consensus mechanisms.

Recent studies highlight the added benefits of IoT and blockchain integration. Khan et al. [23] show that AI-enhanced blockchain improves threat detection by 48.5% and reduces processing time by 23.5% using Ethereum smart contracts and optimized neural networks. Their system includes IoT-focused contracts for data management, malicious node detection, and suspicious traffic defense. Ullah and Havinga [67] identify governance gaps as major scaling barriers, proposing a variable geometry governance framework for responsible deployment in sectors such as smart logistics and healthcare. These examples show that despite technical and regulatory challenges, real-world pilots and functional deployments demonstrate the transformative potential of IoT and blockchain integration.

Recent research highlights the growing potential of blockchain–IoT integration for smart city solid waste management. Paturi et al. [81] propose IoT-enabled smart bins with blockchain smart contracts to reward proper disposal, tested on Matic and Binance Smart Chain. Akram et al. [82] developed a blockchain incentive model using LoRa-based sensors for real-time garbage data processed in the cloud. Jeyabharathi et al. [25] applied multiple IoT sensors for waste classification, with blockchain ensuring data integrity. Zyoud and Zyoud [28] identified AI–blockchain–IoT convergence as a key theme. Berigüete et al. [34] used IoT for waste tracking, and Khanna et al. [72] emphasize blockchain’s role in securing environmental data.

Beyond waste management, integration of IoT and blockchain offers opportunities to enhance transparency, accountability, and citizen engagement in urban governance. Viano [71] showed blockchain tokenization rewarding sustainability actions via localized digital wallets; Razaque et al. [70] emphasized smart contracts and consensus mechanisms for secure, scalable IoT data recording; Ietto et al. [68] used the BBBlockchain platform in Berlin to enable verified planning data access, voting, and token rewards; Zhao et al. [17] found real-time transparency boosts citizen involvement; Ataman et al. [83] positioned blockchain as a governance layer for municipal data exchange; and Bai et al. [35] proposed a consortium model adaptable to IoT data streams.

3.7. Towards a Conceptual Framework

The results of this systematic review align with the existing literature and reaffirm the critical role of technological integration in shaping the future of smart and sustainable urban development through the creation of a conceptual framework. The framework aims to enhance sustainable urban development and promote citizen participation through practical and adaptable technological mechanisms, despite existing challenges. In this study, the integration of IoT and blockchain technologies forms a concrete foundation (see Figure 2) for the advancement of smart and sustainable urban development, incorporating aspects of participatory governance and citizen engagement. It offers decentralized, secure, and transparent solutions across various urban management functions. This synergy is vital for shaping the cities of the future and improving the quality of life for urban residents.

Figure 2. Conceptual framework illustrating the integration of IoT and blockchain for smart and sustainable urban development.

The core layer of the conceptual framework comprises two transformative technologies: the IoT and blockchain. These technologies form the foundation for enabling smart and sustainable urban development and planning. IoT facilitates real-time data collection and urban monitoring, allowing for responsive and efficient management of infrastructure, services, and environmental systems. Blockchain complements this by offering secure, transparent, and decentralized mechanisms for data exchange and governance. Together, they represent a technological convergence that empowers cities to operate more intelligently while fostering trust among stakeholders through enhanced accountability and data integrity. This framework illustrates how emerging digital technologies interact with governance mechanisms and sustainability goals, outlining a transformative path toward inclusive and citizen-responsive smart cities.

The first surrounding layer, colored yellow, focuses on the technical systems and foundational urban structures that are transformed by these technologies. Smart Cities, Infrastructure and Sustainability highlights the aim of integrating advanced technologies into the urban fabric to improve resilience and sustainability. Digital Economy and Governance emphasizes the transformation of urban management into more data-driven, decentralized, and responsive systems. This also emphasizes enhancing economic activity and administrative performance via digital transformation and data-driven decision-making. Energy, Utilities and Environment reflects how IoT applications can optimize energy consumption, streamline services, and monitor environmental conditions to promote ecological well-being. These aspects cover applications in clean energy management, public services optimization, and environmental monitoring to support urban resilience. This important layer helps in the development of smart cities based on these technologies through which infrastructure is developed (traffic systems, waste management, and urban mobility). Finally, Data Security and Privacy addresses the critical need to protect citizens’ data, where blockchain’s encrypted and tamper-proof structure plays a vital role in ensuring trust in smart urban systems.

The second layer, colored green, highlights mechanisms of participation and citizen engagement and also describes how citizens become involved in smart urban development through integrated technological systems. Crowdsourcing, incentivization, and decentralization play a central role in encouraging public participation, where communities are motivated through token-based rewards and decentralized governance structures to influence urban priorities. Complementing this are Co-Creation Mechanisms, including Smart Contracts and User-Generated Content (UGC), which enable citizens to actively collaborate with city planners and institutions, fostering more responsive and inclusive solutions. Smart contracts facilitate streamlined and transparent collaboration between local authorities and residents, often through automated, self-executing agreements. In addition, UGC allows individuals to share real-time feedback, data, and ideas, enhancing responsiveness and fostering innovation. A critical foundation for such engagement is Secure and Accessible Data Sharing, which ensures transparency and builds trust, supported by blockchain’s capacity to safeguard data privacy and integrity. Finally, Public E-Participation and Decision-Making Tools, such as online platforms, digital forums, and participatory planning applications, empower citizens to contribute their opinions, vote on policies, and play an active role in shaping the urban future. E-participation encompasses digital platforms and applications that enable citizens to actively contribute to planning processes and civic decisions. Under the implementation of IoT, citizens can participate in urban management activities such as voting, providing input, or engaging in localized decision-making.

The outermost layer, colored blue, captures the broader societal impacts of integrating IoT and blockchain into urban planning and also indicates the expected outcomes resulting from the sequential implementation of the framework in urban areas. These technologies promote Transparency and Accountability as key outcomes of using blockchain and IoT in urban governance—reducing opportunities for corruption and increasing institutional trust. They are strengthened through the use of digital technologies that enhance visibility in decision-making processes, minimize corruption, and foster public confidence in institutions. Community Well-Being emerges as a critical outcome, representing the social benefits that result from inclusive and technology-enabled urban systems. This includes improved quality of life, enhanced social cohesion, environmental resilience, and greater equity. While this dimension reflects the long-term impacts of inclusion and innovation, it differs from direct citizen action. Community well-being is the ultimate goal, where technology supports equity, resilience, and quality of life in urban environments. As a result, this framework aspires to elevate community well-being as the guiding principle of sustainable urban transformation, ensuring that technological advancement aligns with social equity, inclusion, and long-term human development.

In contrast, Citizen Engagement and Participation focuses on the active processes through which individuals contribute to shaping urban development. This includes the use of e-participation platforms, digital voting, and collaborative planning initiatives. It forms the functional core of public involvement, ensuring that community voices are integrated into planning and decision-making. Finally, Data and Economic Impact highlights how data-driven insights and decentralized digital infrastructures can optimize urban resource use, enable cost-efficient service delivery, and foster innovation, entrepreneurship, and local economic development. As a whole, these layers represent a comprehensive vision of how digital integration can transform cities into inclusive, transparent, and people-centered urban environments.

4. Discussion

This systematic review explores the integration of IoT and blockchain technologies as a means of fostering smart and sustainable urban development, while also examining their role in enhancing participatory governance and citizen engagement. The study highlights the fact that, in smart cities, the integration of IoT and blockchain supports the optimization of urban services by providing real-time information through sensors and actuators, enabling authorities to respond proactively to emerging challenges. This finding aligns with previous research emphasizing the expanding role of IoT and blockchain in managing urban resources and their contribution to adaptive and efficient urban development, even amid environmental, social, and economic challenges [42,54,67].

Taken as a whole, the findings suggest that the convergence of IoT and blockchain serves as a key enabler in the realization of smart cities, particularly in advancing sustainability across sectors such as mobility, energy, waste, and environmental management. These conclusions align with previous literature reviews [26,46,48,50,54,58,59], which highlight that in the mobility sector, IoT devices capture traffic and mobility pattern data, while blockchain facilitates secure transactions for services such as ride-sharing and vehicle-to-grid integration. In the waste management sector, IoT enables real-time tracking of waste levels and optimization of collection and recycling processes, while blockchain promotes transparency, accountability, and sustainability in waste handling practices. In the energy sector, IoT and blockchain facilitate energy monitoring and control in urban environments. In environmental management, IoT systems enable real-time monitoring of environmental parameters to support sustainability goals. This integration of real-time data monitoring through IoT, combined with the transparency and security provided by blockchain, as highlighted in the reviewed studies, significantly enhances the reliability and integrity of smart city operations.

Aside from their critical role in the integration of technologies, incentive mechanisms are also crucial for fostering sustained engagement in activities such as data collection, waste management, and other community-oriented initiatives. The study’s findings indicate that these mechanisms can effectively sustain citizen participation, particularly in tasks involving data validation and contribution. This aligns with prior research [28,35,70] that demonstrates that blockchain-enabled smart contracts can function as real-time incentive systems, rewarding citizens who actively contribute to smart city services such as waste disposal, incident reporting, and urban data sharing. Game-theoretic reward models and proof-of-participation mechanisms have further proven effective in promoting long-term community engagement [35,70]. Hsu et al. [59] further suggest that blockchain-based systems, particularly those utilizing staking or smart contracts, can incentivize accurate and trustworthy climate data reporting by aligning participants’ financial interests with data integrity and transparency.

Shifting the focus toward urban governance and citizen participation, the findings suggest that the integration of IoT and blockchain technologies is driving a paradigm shift toward more transparent, decentralized, and participatory models of administration. IoT networks deliver real-time, granular urban data, while blockchain ensures its secure, tamper-proof, and transparent management, enabling trusted data sharing among diverse stakeholders. These results are consistent with previous literature reviews [17,72,73,84] that emphasize how combining IoT and blockchain can enhance participatory urban governance. As emphasized by Almulhim [7], AI-driven smart infrastructure management enhances urban sustainability and resilience through data-driven governance, participatory frameworks, and ethical accountability, which parallels the integrative potential of IoT and blockchain technologies explored in this study. When embedded within civic-oriented frameworks, these technologies support citizen co-creation and collaborative decision-making, as demonstrated in participatory budgeting platforms, blockchain-based voting systems, and digital engagement tools for urban planning, aligning with the findings of several workers in the field [62,70,71]. This also aligns with the findings of Almulhim and Aina [12], who argue that human-centered smart city governance integrates technology, ethics, and participation to enhance transparency, inclusiveness, and urban sustainability.

Such applications not only enhance citizen engagement but also strengthen accountability and trust in governance, bridging the gap between technical infrastructure and democratic urban development, echoing the conclusions of Kapoor & Singh [39] and Ietto et al. [68]. As emphasized by Almulhim [6], building urban resilience through smart city planning requires an integrated approach that combines technology, governance, and citizen engagement to enhance sustainability and adaptability in urban systems. Furthermore, these findings align with Almulhim and Yigitcanlar’s [85] conceptualization of smart governance as the integration of digital technologies, citizen participation, data-driven decision-making, transparency, and responsiveness in government processes based on real-time data.

In relation to this, the study findings highlight the critical role of blockchain in securing data transactions, reinforcing its importance in ensuring data security and privacy, key elements for incentivizing citizen engagement and fostering improved participatory governance in smart cities. This aligns with previous research that emphasizes that these attributes make blockchain a compelling technology for promoting citizen participation and trust. By ensuring that urban services are delivered in a secure, transparent, fair, and equitable manner, blockchain increases public confidence in governance models [35,42,72,73,84]. Lastly, the study shows that integrating blockchain technology with IoT not only enhances security and transparency but also builds public trust in urban governance systems. These findings align with prior research [43,52], which emphasizes that blockchain-enabled decentralization in city systems can significantly reduce fraud and ensure verifiable, tamper-proof transactions.

The synergy between blockchain and IoT technologies thus fosters a transformation in how city infrastructure is built and managed, making urban development processes more sustainable and participatory. These technologies offer a comprehensive approach to developing smart, inclusive, and sustainable cities through their capacity to enable real-time data management, ensure transparent and secure transactions, and actively encourage citizen participation.

5. Conclusions

This systematic review has examined the role of IoT and blockchain technologies in advancing smart and sustainable urban development, highlighting their potential to drive transformation in sustainability practices, participatory governance, and citizen engagement. The review identified that the integration of IoT and blockchain constitutes a central part of the optimization process of urban services, real-time data provision, security, and transparency in urban development. The apps for measuring environmental data, energy, and waste management, which can be utilized using IoT, have already become critical to developing sustainable cities, and blockchain, in turn, enhances sustainable city development by offering decentralized and secure data transfer operations.

When these technologies are integrated, they become not merely a technological breakthrough but also a social and governance innovation. Integrating IoT and blockchain leads to the foundations of a more transparent and encompassing governance system, in which citizens will be able to actively engage in the process of urban planning and decision-making. To harness the full power of such technologies, however, it is vital to choose policies with inclusive and ethical frameworks for technologies that may interfere with the issues of data privacy, security, and interoperability. It is necessary to consider maximizing the advantages of such technologies and avoiding a digital divide while focusing on inclusiveness.

Finally, one cannot overestimate the role of digital technologies such as IoT and blockchain in realizing urban sustainability. These technologies are essential in the design of smart cities that are resilient, sustainable, and capable of meeting citizens’ needs. The further evolution and integration of IoT and blockchain, along with ethical principles and inclusive values, will define the future of urban environments, developing cities that are not only technologically advanced but also socially just and environmentally conscious. This vision directly supports the United Nations Sustainable Development Goal 11, reinforcing the role of emerging technologies in promoting inclusive, resilient, and sustainable urban futures.